Kiewit to build living quarters for West White Rose CGS in Marystown

<p>Peter Kiewit told Unifor Local 20/MWF this week the company is planning to mothball its operations in Marystown for the time being.</p>

MARYSTOWN, NL – The fabrication facility at Kiewit Offshore Services in Marystown will soon be back in action after an extended mothballing.

The company last utilized the site to build the drilling support module for the Hebron gravity-based structure. That job finished in December 2015. Kiewit shuttered the facility a few months later in May 2016, and it has been idle ever since.

On Wednesday, Husky Energy confirmed Kiewit has been awarded a contract to fabricate the living quarters for the concrete gravity structure (CGS) that will be used for the West White Rose project.

It was also confirmed Pennecon Ltd., SNC Lavalin and Dragados Canada will build of the CGS in Argentia.

Natural Resources Minister Siobhan Coady welcomed the announcement.

“It’s great news that the supply and service industry in Newfoundland and Labrador is benefitting from Husky Energy’s West White Rose project,” Coady said in a press release.

“The project will provide significant employment and procurement opportunities for residents. We worked with Husky to announce this project in May 2017, which is resulting in more than $3 billion in royalties and equity for the province as well as 5,000 person years of employment through construction.”

First oil for the West White Rose project is expected in 2022. Wellhead platform construction will begin later this year. At peak production in 2025, the project will produce roughly 75,000 barrels of oil per day.

“Marystown and its workforce have long played a crucial role in the ‎development of oil and gas projects in the province," Placentia West-Bellevuew MHA Mark Browne said.

"I have remained hopeful that Husky would reach this agreement with Kiewit since announcing they were moving forward with the West White Rose project, and I am delighted to see this work secured for the people of Marystown.”